Mon 4 Feb 2008
The Chapter 11 filing by supplier Plastech Engineered Products Inc. threatens to halt Chrysler’s production at its 14 assembly plants. Chrysler has already shut down 4 plants across the country and cut a shift for a fifth plant. Without the parts that Plastech supplies Chrysler manufacturing (Chrysler makes about 2.3 million cars a year) is at a standstill. I’m surprised in this era of diversification and just-in-time manufacturing that Chrysler doesn’t have any alternative suppliers.
At one point there was talk of a bailout for the ailing Plastech, which never surfaced. Chrysler needs to get an alternate supplier online as quickly as possible. They are suing Plastech to get the parts tooling in order to aid that process.